1. With LMG Secretariat LMG Forum May 2011 Christopher Croft, LMG Secretariat Rob Gillies, LMA

2. LMG Forum 2011 Agenda Modernisation update Endorsements initiative

3. 3 © Xchanging 2010, no part of this document may be circulated, quoted or reproduced without prior written approval of Xchanging. ECF2 Current Status Current slide 23 rd May

4. 4 © Xchanging 2010, no part of this document may be circulated, quoted or reproduced without prior written approval of Xchanging. eAccounts eAccounts Release 1B (R1B) Miller continue their controlled submissions of live business Upgraded testing and training environment has been established for full rollout – Aon will commence their testing on 13 th June. UIB, Guy Carpenter & Price Forbes requested an extension of their testing into May which is now concluding. Plans for further Broker roll out are being established with LIIBA eAccounts Release 2 (R2) Change Requests following the detailed functional review are being evaluated. Options for progressing are being reviewed for presentation to the EAMG 25 th May The build phase has commenced.

5. LMG Forum 2011 The Message Exchange Limited (TMEL) Ownership transferred on 18 th May New Terms and Conditions in effect If you have not signed…

6. LMG Forum 2011 –Aegis –Alterra –Amlin –Arch –Argenta –Argo –Ark –Ascot –Aspen –Atrium –Barbican –Beaufort –Brit –Canopius –Capita –Catlin –Chartis –Decus –Faraday –Flagstone –Generali –Groupama –HCC –Hiscox –Jubilee –Lancashire –Liberty –MAP –Markel –Miller –Navigators –Novae –Odyssey –Omega –QBE –Randall & Quliter –RenRe –RKH –Ropner –RSA –Scor –Sirius –Sportscover –Swiss Re –Talbot –Torus –TransRe –Travelers –UIB –Whittington –Willis –XL –Zurich

7. LMG Forum 2011 Future process Next steps Future process narrative –Addressing issues raised in the consultation process –Highlighting differences between current and future process –Fleshing out the proposals in more detail, via process narrative documents. And then: – Infrastructure, service provision and systems implications of the future process – Cost benefit analysis and client service impact assessment

8. LMG Forum 2011 Non bureau progress Pilot work continues Firms involved: –XL Re –XL Insurance –Chartis –Chubb –RSA –Aon –Willis More welcome

9. LMG Forum 2011 Questions?

10. Endorsement Initiative Update Agenda Electronic Support for Endorsements LMG Forum 25 May 2011

11. Endorsement Initiative Update Agenda Marine pilot update and benefits Smart firms 2011 sponsored classes of business Rollout timeline What next? Questions Agenda

12. Endorsement Initiative Update Agenda Achievements Exchange connections – technical capability of the market to exchange electronic data messages June 2010May 2011 3102

13. Endorsement Initiative Update Agenda Message volumes – use of messaging to support business transactions June 2010May 2011 1,220 52,000 (March) 12,000 325,000 to date to date Achievements

14. Endorsement Initiative Update Agenda Understanding the messaging process – support for broker-underwriter negotiation June 2010May 2011 Achievements

15. Endorsement Initiative Update Agenda Consensus about the future – messaging is a key part of our markets future June 2010May 2011 Achievements

16. Endorsement Initiative Update Agenda Achievements Benefits – understanding and realisation of benefits June 2010February 2011 Benefit now 0 (?)35% Benefit in future 0 (?)89%

17. Endorsement Initiative Update Agenda Achievements

18. Endorsement Initiative Update Agenda Live trading began 1 October; 3 month pilot assessment period Pilot review now complete and results have been communicated 3 surveys to gauge the experience of marine pilot practitioners Post pilot review Independent benefits review by E&Y Degree of success established and lessons learnt: process proved to be stable Pilot issues are being addressed, currently 13 key process issues for which a delivery plan has been confirmed Confirmed roadmap for roll out to further classes through 2011 and 2012 Marine pilot update

19. Endorsement Initiative Update Agenda Process use Transmission of data and documents Scratch Silent endorsements Negotiation PROCESSPROCESS

20. Endorsement Initiative Update Agenda Process use Transmission of data and documents Scratch Simple negotiation Negotiation PROCESSPROCESS

21. Endorsement Initiative Update Agenda Process use Transmission of data and documents Scratch PROCESSPROCESS Complex negotiation Negotiation Transmission of data and documents

22. Exchange Volumes Volumes have been encouraging Message volumes

23. Reduction in man hours Improved error rates Reduced turnaround time for simple endorsements Improved customer service through gains in turnaround times Real time tracking available = increased transparency Improved credit control, capital allocation and management information Main benefits identified by the endorsement pilot

24. Endorsement Initiative Update Agenda Smart firms Process - Greatest benefits are experienced where responsibilities and resources have been clearly allocated to e-Endorsements. Senior sponsorship - The CEO is visible within the firm promoting the initiative Address the impact of cultural change - This is not a technology project. Organisations need to consider the impact on people and processes and monitor and adapt to these. Integration – Greater benefits and acceptance of the process are achieved where firms have a level of integration

25. Endorsement Initiative Update Agenda Case studies Broker Insurer

26. 2011 Sponsored classes of business Roll out to further classes of business sponsored by three major brokers and insurers: Property (Aon) - Catlin Professional Indemnity (Marsh) - Beazley Specie (Willis) - Ace Other brokers will come on board for these classes on a rolling basis Marine is business as usual – volumes are building All other classes of business open for business on a bilateral agreement basis Roll out to all classes in 2012

27. Endorsement Initiative Update Agenda LMG Roll out timeline (awaiting PSSG approval)

28. Endorsement Initiative Update Agenda Measurement and monitoring Other projects show that measurement and peer-comparison drive adoption Need to be careful we measure the right things Data from the Exchange is valuable but limited Data from market firms is necessary but that has its challenges Measurement of benefits realisation PSSG guidance to be sought

29. Endorsement Initiative Update Agenda What next Carriers: Work with sponsoring brokers to identify underwriting and broking teams affected by scope definitions Carriers: Provide underwriter or generic mailbox addresses for each class 1 Brokers: Decide on participation in 1 July classes and discuss engagement with project team (trevor.maddison@lloyds.com)trevor.maddison@lloyds.com New Exchange connections: participate in Exchange testing 2 All: Identify and progress bilateral messaging partnerships All: Undertake business familiarisation with practitioners and draw on central resources - example business scenarios; limited test messages (dummy carrier or broker); workshops; PM surgeries ( 1 Details using standard contacts template to the Exchange Team by 20 June james.bobbitt@lloyds.com) james.bobbitt@lloyds.com ( 2 Contact the Exchange Team james.bobbitt@lloyds.com)james.bobbitt@lloyds.com

30. Endorsement Initiative Update Agenda Phase Two: 1 July 2011

31. Endorsement Initiative Update Agenda Questions?

32. LMA and Endorsements Pilot Contacts Rob Gillies Telephone: 020 7327 8377 Email: robert.gillies@lmalloyds.comrobert.gillies@lmalloyds.com Peter Holdstock Telephone: 020 7327 8383 Email: peter.holdstock@lmalloyds.competer.holdstock@lmalloyds.com LMG Secretariat contact Steve Hulm Telephone: 020 7327 5249 Email: steve.hulm@londonmarketgroup.co.uk steve.hulm@londonmarketgroup.co.uk IUA Contact John Hobbs Telephone: 020 7617 4445 Email: john.hobbs@iua.co.ukjohn.hobbs@iua.co.uk Lloyds Contacts James Bobbitt (Technical) Telephone: 020 7327 5248 Email: james.bobbitt@lloyds.com Paul Willoughby (Project Management) Telephone: 020 7327 6634 Email: paul.willoughby@lloyds.compaul.willoughby@lloyds.com Trevor Maddison (Relationships) Telephone: 020 7327 5231 Email: trevor.maddison@lloyds.comtrevor.maddison@lloyds.com Abby Mullen (Project Support) Telephone: 020 7327 5631 Email: abigail.mullen@lloyds.comabigail.mullen@lloyds.com LIIBA Contact Chris Buer Telephone: 020 7280 0154 Email: chris.buer@liiba.co.ukchris.buer@liiba.co.uk CONTACTS